BTL Investors Have A Brexit 'Wait And See' Policy
Most buy to let investors in the UK are adopting a 'wait and see' policy as the Brexit deadline gets closer, one survey reveals.
The research highlights that more than one in three of those who have bought a BTL property before Article 50 was triggered in March 2017 has not bothered investing since then.
However, while 60% of investors have continued their investing plans since the Brexit referendum in 2016, 17% of them say they are waiting until after Brexit is complete before they decide to invest again.
In addition, most of those who responded to the study say that the buy to let sector will enjoy a strong recovery over the next three years.
Indeed, 64% of landlords investors say the market will be in a 'good' to 'very strong' position.
Post-Brexit buy to let property investment boom
The survey results also highlight that there could be a post-Brexit buy to let property investment boom to be enjoyed across the country.
The survey was commissioned by SevenCapital and its director Andy Foote says that investors should not wait for the UK to leave the EU, but instead consider investing now.
He says: "The speculation is over whether the market will pick up after Brexit or whether it will take a sharp dip should there be a 'no deal'.
"It's easy to understand why there is confusion and for those who are more averse to risk will want to wait until they have a better understanding of which way the market is likely to turn.
"However, if we wait for a property boom, there's a chance that for those who wait will be paying higher prices when they start investing."
He added that for those who are waiting to invest until the market picks up may find there is less opportunity for negotiation and they will also be facing more competition for the best BTL properties.
Most landlords will reuse their mortgage broker
Meanwhile, it's been revealed that most landlords are likely to source their next BTL mortgage from their current broker.
The findings from Paragon are in its latest PRS trends report which reveals that 57% of landlords say they will use the same mortgage broker when seeking another mortgage.
However, 41% say they will probably approach a lender directly for their next BTL mortgage.
Just 10% of landlords say they will switch brokers and 16% say they will consider an online mortgage brokerage service.
Paragon's director of mortgages, John Heron, said: "Landlords have been relying on intermediaries to get the best deals and it's no surprise that landlords will maintain stability to reuse the same broker for their next mortgage.Ē